Voodoo

Sometimes common sense doesn’t jive with government. Here is a report from the CBO that provides an answer to how we increase GDP. It is simple and easy to understand. Dollar for dollar, tax cuts are not the best way to created jobs. The Bush tax cuts created 4.6 jobs for every $1 million in cuts, according to the Congressional Budget Office. Unemployment benefits created 19 jobs for the same $1 million spent. In addition to creating jobs, every dollar spent on unemployment benefits stimulates $1.73 in economic demand, according to an Economy.com study. That's because the unemployed spend every dollar they receive on basic essentials, such as food, clothing and housing. Estimates say that every month benefits are extended costs taxpayers $10 billion. But it also generates $17.3 billion in economic growth every month. This tells me that 120 billion per year spent on unemployment provides 207 billion in additional increase spending. The GDP for 2015 was 18 trillion. If we want a five percent growth we need an additional 900 billion. According to the above if we increase unemployment benefits from 10 billion per month to 45 billion we will achieve the goal of 5% GDP. I remember when Reagan was accused of voo-doo economics and this looks kind of voo-dooish to me